Disadvantages Of Mobile Banking

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The world has transitioned into the technological era where the use of mobile phone has become remarkably important to connect people globally. Referring to Aijaz and Heikki (2014), mobile banking is often defined as an enabler allowing banks and customers to interact, while mobile money involves peer-to-peer business. To give an example of what these services offer, it would allow for financial transactions such as balance inquiries, funds transfers, bill payments, and inquiries concerning account history. According to KPMG report (2015), the proportion of users in its service has grown rapidly over the past three years, with the number of global users of mobile banking projected to increase to 1.8 billion people by 2019 compared to 0.6 billion…show more content…
Moreover, Chandran (2014) also notes that the service does not require an Internet connection or smartphone to access the transactions, meaning customers can easily transfer funds, check account balance through a short message service (SMS) based method or call the financial service providers for 24 hours a day. Therefore, the service is not only convenient for the suburban population with regard to their ability to undertake various forms of financial transactions and utilize available services but also reduces expenses by making physical travelling to brick-and-mortar stores obsolete. Furthermore, whilst the majority of poor people in India work in the city whereas they are not likely to visit their families as frequently based on Chauhan (2015). There is evidence to suggest that the transfer of money at the bank might be complicated and costly to those who may not be familiar with formal financial sectors. As a consequence, mobile money can be a useful tool for them to transfer funds to family members in rural areas. Additionally, these services can be useful for senders and receivers since it is low cost, convenient, and offers security to users as stated by Kumar at el (2011). Hence, Chauhan (2015) also added the mobile money…show more content…
Consequently, there is a large percentage of the Zimbabwe population who are constrained with respect to their abilities to use banking services. Hence, it would appear that there are intrinsic advantages of mobile banking to Zimbabwe people, namely that the service makes financial transactions more accessible, is easy to understand for illiterate people, resulting in improvements to the standard of living for Zimbabweans, as it makes loans and other benefits more realizable based on Mago and Chitokwindo (2014) studied. In addition, mobile money is more affordable than more traditional formal banking services which would normally involve a service charge for withdrawal of funds or view bank statements, a factor absent from the former by Kempson et al (2004). Thus, since the focus of mobile banking services is on people not nominally associated with a bank, a large proportion of the country, further development of financial sectors of, in this case, Zimbabwe 's economy will most likely
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